O. J. On The Pullbacks


Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Futures and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.


At the time this is being published, the S&P Globex Futures are trading 1.60 points lower and the Bond Market Futures are trading up 3 ticks.

September Orange Juice [OJU9>OJU9], on the Pullbacks From Lows List, is a three bar pullback that closed poorly (a) and appears poised to resume its downtrend. Look for a shorting opportunity here.



Source: Omega Research.

The September S&P Futures [SPU9>SPU9], on the Turtle Soup Plus One Sell List, hit marginal new highs today but then sold off. This combined with the fact that the market is overbought may provide a shorting opportunity.

For you breakout players, the energies, August Heating Oil [HOQ9>HOQ9], Unleaded Gas [HUQ9>HUQ9], are all on the Momentum 5 List and are hovering right at or near new highs. In addition, Heating Oil and Crude are on the Volatility Explosions — Low Multiple Days List. This suggests that the move may be higher as volatility reverts to its mean. Look for buying opportunities here.

Volatility Watch

The September Japanese Yen [JYU9>JYU9] still remains on all three Volatility Explosion Lists. Continue to watch for a larger-than-normal move as volatility reverts to its mean.

Best of luck with your trading on Tuesday!

Dave Landry

PS-Reminder: Protective stops on every trade!